There’s no question about it, that when it comes to saving for retirement, the financial mass media pounds the table with all things retirement accounts like IRAs and 401(k)s, but there’s a vastly underutilized investment vehicle that can help retirees enjoy a potential 6-figure retirement income, entirely tax-free.

We are referring to the good olé brokerage account.

A brokerage account is simply an investment account you open where you deposit money from your own bank account and then you can use that cash to invest in various investments held inside that brokerage account. Most commonly, people will invest in things like stocks, bonds, mutual funds, ETFs, things of that nature.
In this episode, I teach you how you might utilize a brokerage account for a 6-figure retirement income, tax-free.

More specifically, we discuss:

• The difference between a brokerage account and a retirement account such as an IRA or 401(k)
• How a pre-retiree might accumulate funds inside of a brokerage account
• How taxes work when it comes to brokerage accounts and the investments held inside them
• How exactly you can end up paying no federal taxes on over 6-figures of income
• Hypothetical scenarios (basic concept and real-world)
• The importance of a retirement income plan and investment strategy

Resources:

• Access Episode Show Notes and Sign Up for the Retired·ish Newsletter
• Ask Cameron A Question!

Key moments:

(03:44) Build brokerage account for retirement income flexibility

(07:35) Pre-Tax IRA/401(k) assets taxed as ordinary income, brokerage assets can be subject to lower long-term capital gains rates

(10:08) 0% capital gains tax up to $96,700 for married filing joint in 2025

(12:07) Conceptual Scenario: high 6-figure income in retirement, zero taxes

(15:24) Real-World Scenario: high 6-figure income in retirement, zero taxes

(23:02) Key points when using brokerage accounts as part of your retirement income strategy